Fri, May 6, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

InvestorAnalytics highlights the myths of risk aggregation in new white paper

Tuesday, October 02, 2012

Bailey McCann, Opalesque New York:

US-based risk management firm InvestorAnalytics, has released a new white paper focused on uncovering the myths that investors commonly believe in when it comes to risk aggregation. "We have been at this for so long, and seen the same behavior over and over we wanted to assess the repeat problems," says Damian Handzy, CEO, InvestorAnalytics in an interview with Opalesque.

The three myths tackled in the paper include: choosing a risk aggregator based on the number of managers on the platform, attempting to get 100% coverage of all managers, and that using managed accounts means an investor doesn’t need to have a risk aggregator.

According to Handzy, the point of risk aggregation is to provide a clearer assessment of the real risks in a given portfolio. This data is important to both managers and investors but may not always be as complete or as specific as investors expect it to be – specifically because of data quality issues.

Data quality management is essentially a two-fold process that should take into account the qualitative – which managers are accounted for, and what they do, and the quantitative – is the data right, what data is it, and where are the holes. However, according to the paper, many investors are looking at the wrong factors when trying to compile and assess their data.

Risk aggregators in the past have noted the number of managers on their platform as a means of indicating completeness. However, that ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n